Middlemen are key to China's growth in acquisitions to improve the country's domestic football, which is enjoying its current expansion. (Photo : Getty Images)
Football has become a highly lucrative investment in China, where many of its residents count themselves in as among its most ardent fans. But as Chinese clubs splash the cash, most notably to acquire European footballing talent, the view from the middlemen--bankers and agents alike--promises to be interesting.
Chinese involvement has become commonplace in today's era of foreign ownership in European football. The likes of West Bromwich Albion and Hull City FC in the Premier League have been taken over by new Chinese owners, enabling them to become entry points for further investment, Daily Mail reported.
The deals that have been closed would not have materialized without the involvement of middlemen, whose communication skills meant for negotiation have helped broker deals between European football clubs and Chinese investors.
Middlemen, typically banking on referrals from potential investors, continue to serve Chinese businessmen looking to invest in football with great favor. As investors remain keen on going under the radar, middlemen try their best to connect them to their potential footballing acquisitions.
Tasked to bridge the need to close deals as opportunities for undue reputational damage against investors are eased, middlemen rely on an ever-growing network of acquaintances. Many of those are chance encounters in social settings, with those looking for investments approaching first.
From that same network, middlemen source out investors looking to enter lucrative footballing markets. Once talks commence towards fruition, it's almost always the clubs looking for investment who pay them for their bridging services.
But the practice itself has been wrought by corruption, as investors only care about sealing deals without caring where their investments go. Within the context of China's current splurge on players from Europe, the money spent isn't accounted for the country's footballing development, The Guardian said.
Instead, middlemen and club officials become the primary recipients of the money paid unto them. As it turns out, the cash funneled unto them by club owners merits some explanation on where it came from and how its management takes place, with the likes of money laundering eyed as a possibility.
